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Bank reconciliation statement

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Bank reconciliation statement

  1. 1. BANK A Bank is a financial intermediary and money creator that creates money by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet.
  2. 2. The cash books are simple accounting books that are used to enter basic data about cash payments and receipts. CASH BOOK & PASS BOOK
  3. 3. CASH BOOK & PASS BOOK FORMAT
  4. 4. BALANCING OF CASH BOOK AND PASS BOOK Balance
  5. 5. NOT BALANCING OF CASH BOOK AND PASS BOOK
  6. 6. Bank Reconciliation Statement FORMAT
  7. 7. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book 200 Bank Reconciliation Statement as on Dec 31, 2003 Example sum of BRS , Pg. no.206
  8. 8. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book LESS: Cheques deposited but not credited by the bank 1,500 200 Bank Reconciliation Statement as on Dec 31, 2003 CASH BOOK PASS BOOK 100 100 (+) 1500 - 1600 100≠(-) 1. Cheques deposited but not yet collected by the bank Rs. 1,500
  9. 9. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book ADD: Cheques issued to Mr.Raju but not presented for payment 2,500 2,500 200 Bank Reconciliation Statement as on Dec 31, 2003 CASH BOOK PASS BOOK 3000 3000 (-)2500 - 500 3000 (+) ≠ 2. Cheque issued to Mr.Raju has not yet been presented for payment Rs. 2,500
  10. 10. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book LESS: Bank charges as per pass book 200 200 200 Bank Reconciliation Statement as on Dec 31, 2003 CASH BOOK PASS BOOK 500 500 - 200 (-) 500 300 (+) ≠ 3. Bank charges debited in the pass book Rs.200
  11. 11. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book ADD: Interest allowed by the bank 100 200 Bank Reconciliation Statement as on Dec 31, 2003 CASH BOOK PASS BOOK 500 500 - 100 (+) 500 600 (-) ≠ 4. Interest allowed by the bank Rs.100
  12. 12. PARTICULARS AMOUNTS AMOUNTS Balance as per Cash Book LESS: Insurance premium directly paid by the bank as per standing instructions 500 200 Bank Reconciliation Statement as on Dec 31, 2003 CASH BOOK PASS BOOK 1000 1000 - 500 (-) 1000 500 (+) ≠ 5. Insurance premium directly paid by the bank as per standing instructions Rs.500
  13. 13. SOLUTION
  14. 14. RECALL
  15. 15. Assignment - go through the example sum - do the exercise sum 1 & 2 - write any two cases of disagreement between the balance shown by the cash book & pass Book
  16. 16. THANK YOU

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